Court Fight Behind Them, Cerberus Clinches Its Innkeepers Deal

Innkeepers USA Trust on Thursday said it has closed its $1.02 billion sale of 64 hotels to Cerberus Capital Management LP, the last step in the hotelier’s emergence from Chapter 11 bankruptcy.

A judge last week approved the lower-priced sale of the hotels, which is down from a $1.12 billion deal that Cerberus and deal partner Chatham Lodging Trust backed out of in August. Cerberus itself is committing about $60 million less capital in the new transaction.

The two sides were set to go to trial earlier this month over Innkeepers’ lawsuit, which accused Cerberus and Chatham of using a “material adverse” clause in the sale documents to improperly back out of the deal. However, they eventually settled on the lower price.

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